(Table) Based on the table, what is the profit-maximizing output for John's Tricycle Company?
$\begin{array}{|c|c|c|}
\hline \text { Output } & \begin{array}{c}
\text { Marginal } \
\text { Cost }
\end{array} & \begin{array}{c}
\text { Total } \
\text { Revenue }
\end{array} \
\hline 5 & 1,200 & 7,500 \
\hline 6 & 1,300 & 9,000 \
\hline 7 & 1,400 & 10,500 \
\hline 8 & 1,500 & 12,000 \
\hline 9 & 1,600 & 13,500 \
\hline
\end{array}$

Question

Quizplus · Accepted Answer

The profit-maximizing output is where marginal cost equals marginal revenue. The table does not directly provide marginal revenue, but we can calculate it by finding the change in total revenue as output increases. From 7 to 8 units, the total revenue increases from 10,500 to 12,000, a change of 1,500, which matches the marginal cost of increasing output from 7 to 8 units (1,500). This indicates that producing 8 units maximizes profit.

(Table) Based on the Table, What Is the Profit-Maximizing Output